University of North Florida
Board of Trustees
Finance and Audit Committee

Meeting

June 19, 2012
Student Union, Ballroom at 12:30 p.m.

Minutes

Members Present

Hugh Greene, Rad Lovett, Oscar Munoz, Lanny Russell

Members Absent

Carlo Fassi, Joannie Newton

Item 1 Call to Order

Chair Munoz called the meeting to order at 12:15 p.m.

Item 2 Minutes (March 20 and May 10)

Chair Munoz asked for a motion to approve minutes from the March 20 committee meeting. A MOTION was made by Trustee Lovett and seconded by Trustee Russell. The March 20 minutes were approved as presented. Chair Munoz asked for a MOTION to approve minutes from the May 10 committee meeting. A MOTION was made by Trustee Greene and seconded by Trustee Lovett. The minutes were approved as presented.

Item 3 Open Comments

Chair Munoz offered opportunity for comments from the public regarding items on the agenda. No comments were made.

Vice President Shuman clarified that the university was asking the committee to recommend approval to the full Board for proposed amendments to the 2012-2013 tuition and fees regulation. She reported that the proposed amendments were reflective of the Board’s approval of tuition and fees at the March 20, 2012 meeting. She noted that, because of mandates from the state budget, this regulation was presented for approval twice each year, once as an emergency regulation and again for standard promulgation.

Chair Munoz asked for a MOTION for approval of the emergency regulation amendment – schedule of tuition and fees regulation. A MOTION was made by Trustee Lovett and seconded by Trustee Russell. The MOTION was carried as presented.

Item 5 UNF’s Budget for 2012-2013

Chair Munoz asked Vice President Shuman to speak about this item.

Vice President Shuman reported that there had been no changes to the total budget, since the committee’s budget workshop May 10, 2012. She clarified that the university was asking for approval for the proposed operating budget.

Chair Munoz asked for a MOTION for approval of UNF’s budget for 2012-2013. A MOTION was offered by Trustee Greene and seconded by Trustee Lovett. The MOTION carried unanimously.

Vice President Shuman stated that each DSO had its own governing body, where each DSO budget was discussed and approved.

Vice President Shuman spoke about each DSO as follows,

revenues for the UNF Foundation, Inc. were up slightly this year,

the Training & Services Institute, Inc. was working to build revenue after a nine-year contribution to various projects of about $9 million,

the UNF Financing Corporation, Inc., was in place for financing purposes and revenue of $30,000 was passed through for some recurring expenses,

MOCA, Jacksonville started the new fiscal year with more pledges and UNF would continue its financial commitment. There was a discussion on replacing windows in the building, with the conclusion being that options would be presented to a city council committee.

This item was presented for information only. No additional action is needed.

Item 7 Office of Internal Auditing (OIA) – Quarterly Report

Chair Munoz asked Mr. Robert Berry, director of the Office of Internal Auditing, to speak about this item.

Mr. Berry spoke about OIA’s assurance engagements, noting that final reports were completed for four campus security audits, the Osprey 1 Card, and one unplanned audit, and three audits were on hold. He reported that 85 percent of audit issues were closed or resolved. Mr. Berry gave an accounting of the whistleblower hotline, stating that no allegations were received. He concluded with a report on fraud activity, conveying that there were two instances of fraud detected by normal processes, which resulted in process improvements.

This report was provided as information only. No additional action was required.

Item 8 Office of Internal Auditing – Audit Plan

Chair Munoz asked Mr. Berry to speak about this item.

Mr. Berry offered appreciation to the administration and the Board for restoring personnel resources to the Office of Internal Auditing. He spoke about the 2012-2013 Annual Plan for the Office of Internal Auditing, reporting on notable items for the upcoming year. He spoke about risk assessment, mentioning that, due to loss of staff, there were delays in completing the 2013 fiscal year but efforts were being made to complete the risk assessment process.

Mr. Berry presented the proposed 2013 plan summary, listing three planned engagements as (1) grade integrity, (2) fuel usage, and (3) student fees, along with advisory services, investigations and follow up. He spoke about resource allocation for the department, noting that there were 60 percent fewer direct hours available than the previous year.

Chair Munoz asked for a MOTION for approval of the 2012-2013 Audit Plan for the Office of Internal Auditing. A MOTION was offered by Trustee Russell and seconded by Trustee Lovett. The MOTION was approved as presented.

Item 9 Quarterly Budget Report

Chair Munoz asked Vice President Shuman to speak about this item.

Vice President Shuman reported that the university’s total budget was well within anticipated boundaries. She noted that the state had not required a budget reduction to date and there were no call-backs for this fiscal year.

Vice President Shuman reported that the university anticipated about $1.3 million in additional tuition revenue, which would carry forward next fiscal year as non-recurring revenue. She concluded by stating that the university did not anticipate any budgetary isues at the end of this fiscal year.

This report was for information only and did not require additional action.

Item 10 Treasurer’s Report

Chair Munoz asked Vice President Shuman to speak about this item.

Vice President Shuman reported that the portfolio showed cash in the bank and investment activity within targets. She noted that some of the debt balances were paid out in May.

This report was for information only. No additional action was required.